Padi Kuning Bhd was incorporated in 2010 and was involved in diversified business activities. The company closes its account annually to 31 December. In 2018, the company has constructed a factory with a total cost of RM1,100,000 (including cost of land of RM200,000). The construction was completed in July 2019, and was immediately used for business. 4% from the total area was used for restroom and 8% as an office. On 15 February 2019, the company bought a residential house from housing developer costing RM730,000. The house was used as a living quarters for factory production workers. In September 2019, the company constructed another building for storage of finished goods within the factory compound at a cost of RM200,000. The construction was completed and put to be used starting from January 2020. In 2020, the company also enters into a built-lease-transfer contract with Kementerian Pendidikan Malaysia to construct school buildings for RM10 ,810,000. The project was approved by Ministry of Finance. The building was completed in 2020 and was leased to the government on 1 March 2020 for a period of 10 years with monthly leased payment of RM170,000. Required: Compute the industrial building allowance for all the relevant years of assessment. a.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Solve this

Padi Kuning Bhd was incorporated in 2010 and was involved in diversified business
activities. The company closes its account annually to 31 December.
In 2018, the company has constructed a factory with a total cost of RM1,100,000 (including
cost of land of RM200,000). The construction was completed in July 2019, and was
immediately used for business. 4% from the total area was used for restroom and 8% as
an office.
On 15 February 2019, the company bought a residential house from housing developer
costing RM730,000. The house was used as a living quarters for factory production
workers.
In September 2019, the company constructed another building for storage of finished
goods within the factory compound at a cost of RM200,000. The construction was
completed and put to be used starting from January 2020.
In 2020, the company also enters into a built-lease-transfer contract with Kementerian
Pendidikan Malaysia to construct school buildings for RM10 ,810,000. The project was
approved by Ministry of Finance. The building was completed in 2020 and was leased to
the government on 1 March 2020 for a period of 10 years with monthly leased payment of
RM170,000.
Required:
a.
Compute the industrial building allowance for all the relevant years of assessment.
Transcribed Image Text:Padi Kuning Bhd was incorporated in 2010 and was involved in diversified business activities. The company closes its account annually to 31 December. In 2018, the company has constructed a factory with a total cost of RM1,100,000 (including cost of land of RM200,000). The construction was completed in July 2019, and was immediately used for business. 4% from the total area was used for restroom and 8% as an office. On 15 February 2019, the company bought a residential house from housing developer costing RM730,000. The house was used as a living quarters for factory production workers. In September 2019, the company constructed another building for storage of finished goods within the factory compound at a cost of RM200,000. The construction was completed and put to be used starting from January 2020. In 2020, the company also enters into a built-lease-transfer contract with Kementerian Pendidikan Malaysia to construct school buildings for RM10 ,810,000. The project was approved by Ministry of Finance. The building was completed in 2020 and was leased to the government on 1 March 2020 for a period of 10 years with monthly leased payment of RM170,000. Required: a. Compute the industrial building allowance for all the relevant years of assessment.
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education